Thursday

How Millennials impact Boomer Spending: There Are Huge and Odd Impacts

We talk a lot about the impact of millennials living at home with their parents and what that means for the upcoming generation. Stats vary, but somewhere between one in 10 and three in 10 seems to be a good guess for how big of a population we're looking at, although we've seen stats of up to 85% of graduating college seniors planning to move back home.
Some of these so-called Boomerangs are saving money by not renting, but many more just don't have any money to save because the unemployment rates are so high for people in their 20s -- almost 15% for those aged 20-24.
But we don't talk a lot about what it does to the spending habits of their boomer parents. Turns out, in some cases there are huge and odd impacts.
The chart below illustrates some data from Experian about differences in boomer households where the kids have flown the nest and those where the birds have returned to roost.
7-7-2011-boomer-chartv3
The findings also showed that these boomers are also more likely to be still shopping for their kids. Retailers such as American Eagle Outfitters, Banana Republic and Express are still popular with boomers whose kids live at home, despite being more directly targeted to those kids themselves.
Maybe boomers are not doing the economy any good by housing their millennials